New RGA Report Identifies Most Expensive Specialty Drugs

RGA Reinsurance Company, a subsidiary of Reinsurance
Group of America, Incorporated, (NYSE: RGA) today released a report
identifying 183 high-cost specialty drugs, defined as costing greater
than $50,000 annually or $7,000 monthly, based on wholesale acquisition
costs (WAC) of each product identified. The report and accompanying
management tool serve as a resource to educate and inform healthcare
professionals about high-cost drugs.

Of the 183 drugs on the list, 126 (69%) cost more than $100,000 per
year, and 48 of those (26%) cost more than $200,000 annually. The most
expensive drugs in annual cost include:

Glybera, which is indicated for the treatment of lipoprotein lipase
deficiency ($1,210,000). This product is not yet approved by the U.S.
Food and Drug Administration (FDA), but is available in Europe.

Ravicti, indicated for the treatment of urea cycle disorders ($793,632)

Lumizyme, indicated for the treatment of Pompe’s Disease ($626,400)

Carbaglu, indicated for hyperammonemia ($585,408)

Actimmune, for the treatment of severe, malignant osteopetrosis and
chronic granulomatous disease ($572,292).

According to the report, hemophilia and related disorders are some of
the most expensive diseases to treat medicinally. Treatment options
include, 34 different specialty drugs listed at $100,000 or more per
year. RGA’s report, which is available to the company’s clients,
includes a detailed analysis and disease breakout on hemophilia drug
costs. Click
here to view an infographic outlining some additional information
contained in the report.

To accompany the report, RGA also developed a detailed Excel tool to
help its clients manage the surge in both the volume and the cost of
specialty drugs. The tool, which can be quickly and easily searched,
sorted, and filtered to specific drug names, codes, classes, and costs,
was developed by RGA Group Research in conjunction with ROSE®
Health Services Consultants. ROSE (Reinsurance Outcomes and Service
Experts) is a nurse-led consulting service and the nation’s foremost
reinsurance-based case management consulting program.

"This report and management tool will serve as invaluable resources for
practitioners across insurance medicine," said Michelle Fallahi, Senior
Vice President, Healthcare Reinsurance, RGA. "With the rising cost of
healthcare, the role of insurance has never been more important,
especially for patients requiring high-cost treatment. Programs like
ROSE and resources like this high-cost drug management tool enable
carriers to manage cost more effectively and lead to the goal we are all
working toward: better outcomes for patients."

About the Report

For the scope of this tool and report, high-cost drugs are defined as
costing greater than $50,000 annually or $7,000 monthly. The cost cited
is the lesser of the cost of curing the disease in a given patient or
providing 12 months of treatment. The exception to this definition is if
a lower-cost drug is routinely paired with a higher-cost drug, then it
is also listed in this report. Costs were based on Wholesale Acquisition
Costs (WAC) which represents a manufacturer-reported “list price,” at
which, that manufacturer will sell a medication to a wholesaler. Like
Average Wholesale Price (AWP), WAC is not based on actual sales
information, and it is usually higher than the price at which a
manufacturer will sell a drug to a wholesaler. WAC does not represent
actual transaction prices and does not include other discounts, rebates,
or reductions in price.

About RGA

Reinsurance Group of America Incorporated (RGA) is among the leading
global providers of life reinsurance and financial solutions, with
approximately $3.1 trillion of life reinsurance in force and assets of
$53.9 billion as of June 30, 2016. Founded in 1973, RGA today is
recognized for its deep technical expertise in risk and capital
management, innovative solutions, and commitment to serving its clients.
With headquarters in St. Louis, Missouri and operations in 26 countries,
RGA delivers expert solutions in individual life reinsurance, individual
living benefits reinsurance, group reinsurance, health reinsurance,
facultative underwriting, product development, and financial solutions.
To learn more about RGA and its businesses, visit the company’s website
at http://www.rgare.com/.

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